"One thing we have to recognize is that if we have two members of a particular family who are both working, first of all they are putting in twice the working hours." This is the comment made by the Honourable Jim Peterson, the government’s Junior Finance Minister, as he defended the government’s present tax policy, which discriminates against single income households where one parent remains at home to care for the children.

On March 4, 1999, the Official Opposition sponsored an all day debate on the topic of family taxation. The government was pressed to adopt the motion: "That in the opinion of this House, the federal tax system should be reformed to end discrimination against single income families with children."

The government has given an unfair tax advantage to dual-income families. For example, in 1997 a dual income family each earning $25,000 per year pay a total tax of about $8,452 when they filed as individuals. If their total income of $50,000 was earned by only one of them, their total tax payable was about $12,356, a difference of $3,904.

The tax reductions announced in the 1999 budget do nothing to help eliminate the discrimination against single income families. A single income earner with a family of four making $50,000 per year paid $3,400 or 91.5% more in federal taxes in 1998 than a dual income family making the same amount. In 1999 the federal tax for a single income family of four making $50,000 is $6,464. A dual income family making the same amount will pay $3,160 in federal tax. That means the single income family will pay 104% more tax than the dual income family.

By taxing families in this manner, added stress is put on parents. In a 1998 Southam News/Compas poll, 90% of Canadians felt that parents with children suffered more serious stress from high taxes now compared to a generation ago. Would tax relief also relieve stress?

Shouldn’t there be equality for all families under Canada’s taxation system? The current inequality is forcing families to have two-income earners and a 1991 Canada-wide poll proves this. Decima Research conducted what is considered the most comprehensive poll ever taken of Canadian women. They asked: "If you had the choice, would you stay at home and raise your children or work outside of the home and use day care?" 70% of women said they would stay at home if they had the choice, compared to the 27% that said they would choose day care.

Following the all day debate on family taxation a vote was taken on the Motion presented by Reform. The NDP, P.C. and Bloc Quebecois all supported the Motion, however, the Liberal Government with their majority defeated the motion to end discrimination against single income families by a vote of 145 to 123. Despite widespread discomfort, government MPs had to vote the party line.

Finance Minister Paul Martin has asked the all-party Finance Committee to explore tax reforms that will make it easier for families to raise their children. What is unfortunate is that the government had the opportunity to take immediate action by supporting the Official Opposition motion, but by defeating the motion and referring the matter to the finance committee, the whole process will slow down and grind to a halt. In the meantime, single income families with children will continue to be discriminated against.

During the debate on family taxation I pointed out some of the inequalities. We need to work towards making the tax system fairer for all families. Accusations have been made that Reform does not support paid childcare as a tax deduction. We have never said that, what we are objecting to is the fact that parents who stay at home to care for their children are not treated equally. A tax reduction for parents and in fact everyone would reduce stress. It would also reduce costs in the area of health care, education, social services and in the justice system. Should parents that stay at home to care for their children be penalized by our tax system?

If you have any comments or questions please call my constituency office at 1-800-667-6606.

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